SC issues notices to PwC, govt bodies

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SummaryNGO contended huge inflow of funds in violation of foreign direct investment policy.

The Supreme Court on Friday issued notices to PricewaterhouseCoopers (PwC) Pvt Ltd, its network audit firms and various government agencies on a PIL demanding inquiry into the firm’s alleged financial malpractices and fudging of accounts.

“We have gone though the details in the petition. We are going to examine the issue,” said a bench led by Chief Justice P Sathasivam as it also sought replies from Centre, the Reserve Bank of India, Central Board of Direct Taxes, the Institute of Chartered Accountants of India, etc.

The notices were issued on a PIL filed by NGO ‘CPIL’ which alleged that PwC and its network firms indulged in activities in breach of various statutes and policies, including evasion of income tax, violations of FDI policy, RBI guideline, Foreign Exchange Management Act (FEMA) and other rules.

The NGO has contended that the huge inflow of funds in violation of foreign direct investment policy as well as RBI and FEMA rules “raises serious apprehensions about the end use” of the money.

Sources in the firm said they were surprised that a private limited company could be a subject of a public-interest litigation and ascribed the reason for the PIL to the expulsion of a former CFO from PwC a few years ago.

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